Question: When is a tax cut not a tax cut? Answer: When it is a tax rebate. That’s how New York state has decided to ease the onerous burden of local property taxes, and no homeowner in his right mind is going to turn down a check of $384, the average rebate this year. But don’t be fooled. Those rebates, and the entire STAR program they are a part of (average savings $1,024 this year), may be politically popular but they are bad tax policy. The original STAR (School Tax Relief) at least looked like a tax cut in that it provided a homestead exemption and was intended to be permanent. Unfortunately, it never fulfilled its promise because it lacked the cap on the annual growth in school tax levies (4 percent or the rate of infl ation) that Gov. Pataki had included in his 1997 proposal. The result was that taxpayers didn’t get the relief they should have, as school districts just used the STAR savings to hold down the size of their own tax increases and make it easier to pass big budgets. School taxes have continued to climb despite STAR and despite record increases in state aid to education the last two years. But STAR wasn’t really a tax cut, just a shift of the tax burden. The state in the coming year will spend $4.7 billion subsidizing local school taxes ($6 billion by 2009-10), and this money will also come from us taxpayers, primarily through the income tax. One can argue that the income tax is more progressive than the property tax, which hits people on fixed incomes especially hard. The same could be said for this year’s rebate, which is means-tested and targeted at the middle class. But the state must make up the money by either raising taxes or cutting spending. How likely is the latter to happen? And if the original STAR wasn’t really a tax cut, the rebate is even less of one. It’s more like a bonus given to you by your boss — in this case, your friendly legislator and governor, who will both claim credit for it. Easily given, but also easily taken away. The state should stop the games and legerdemain. If it is serious about holding down school taxes, it would put a cap on annual increases in them, as Massachusetts did more than 20 years with Proposition 2 1 /2 and New Jersey did this year. Exceptions can be made for such things as increased enrollment, size of the property tax base, and extraordinary circumstances. The state would also guarantee a steady and sufficient fl ow of aid to those subject to the cap. Especially now, with Gov. Spitzer having changed the state aid formula to drive more aid to needier districts and committed to more large increases over the next three years, it’s worth a try.
Homeowners should see information regarding the state property tax rebate in their mail by August 15th. But NYSTU joins other fiscal groups in expressing skepticism of the program.
In 2007 there is a requirement to report income back to the state to qualify for the program because Governor Spitzer and the legislature required means testing and the rebate is phased out for anyone with an income above $250,000.
For the average homeowner with an income under $90,000, the "rebate" should be about double the amount of their current Basic Star amount.
Senior citizen property owners over age 65 will not need to apply because they should now receive the Enhanced Star benefit with their income already verified.
We, however, agree with other fiscal groups that say that the only truly fair tax reduction is a permanent, across-the-board cut in tax rates. As EJ McMahon recently pointed out, in 1980 Massachusetts passed Proposition 2 1/2, capping tax levy growth at 2 1/2 percent a year. Within a decade, the combined state and local tax burden in Massachusetts had tumbled from the top of national rankings to well below average. No one now calls it "Tax-a-Chusetts." After trying its own costly STAR-like "tax relief" gimmicks, New Jersey just imposed a 4 percent cap on the growth of school property tax levies.
And now a group of state Assembly Republicans have introduced the New York State Property Taxpayers Protection Act to limit school property tax levy increases to the rate of inflation or 4 percent, whichever is lower. The bill would also give school districts substantial relief from costly state mandates.
The time for gimmicks has passed. The New York State Property Taxpayers Protection Act would lead to the permanent tax relief all property owners need.
Actually, I'm sure it's the tax department right on the campus off exit 3 in Albany. They're there all year round. Might as well give them something to do.
Editorial nailed the fallacy behind state mailing tax rebates
Your July 22 editorial on tax rebates is right on target — the tax rebates in question do nothing but enable the continuation of bad fiscal practices using taxpayer money, but in a roundabout way. The net result is more spending, and that is the fundamental issue in New York. We have more government employees per capita than almost any other state; and the compensation and benefits of those government employees must be paid by those who are not on the government payroll. Your own Carl Strock has pointed out many times the relationship of the total cost of government employees to the compensation of ordinary citizens. If the total salary and benefits (lifetime health care/overtime-based retirement/ early retirement, etc) of the typical government worker were divided by the total lifetime hours worked, and this were compared to the same amounts for non-government employees, the comparison would be staggering. When there are such large numbers of employees who must be paid, there are fewer non-government employees to pay the bill. All of this drives up costs. When the so-called tax rebates appear to be a benefit but are not, trouble is in the offi ng. Congratulations on seeing through all this. SHERIDAN BIGGS Quaker Street
We are pleased to advise you that, this year, New Yorkers are once again eligible for real property tax relief in the form of a 2007 Middle Class STAR Rebate Program check. This year’s rebate check is based not only on your property tax burden, but also on your ability to pay, factoring in your income level. Starting July 16, the Tax Department will begin mailing letters alerting homeowners who receive the basic STAR exemption of the need to apply and provide income information to receive this year’s Middle Class STAR rebate. Please see the information below to learn more about the program, including how to apply.
How do I apply? How much will I receive? How do I find out more? What if I am over 65 years old and receive enhanced STAR benefits? When will I receive my rebate check? Need more help? Call 1-877-678-2769
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
To apply, you will need information contained in rebate material that will be sent to you by the Tax Department. We are currently mailing rebate information to New York City and Yonkers. We will mail rebate information to the remainder of New York property owners as soon as we receive real property assessment information from localities in mid-August.
To see when your rebate material will be mailed, click here: Once you have received your rebate material, click here to apply:
Apply no later than November 30, 2007. Enhanced STAR recipients do not need to apply.
This is from the Schenectady forum on July 16th. It appears the site has changed as per above post.....
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
What a waste of my time.....if I wanted to work for the government I would have filled out an application.......and taken test after test after test......they are just as bad as the schools.......test test test......this is a test of your patience, thank you for coming, voting, and grabbing your own money we are holding out for you to grab.......what a circle jerk this is.........RED HERRING..................SHOW ME THE $$ TRAIL...............................IT MUST BE INVESTED IN THOSE HEDGE FUNDS.........................
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
From Hugh Farley's office, sent out 1:05 AM today.
Quoted Text
Dear Friend:
Several people have asked me how this year's STAR Rebate Program will work.
Unlike last year's program, homeowners who receive the BASIC STAR exemption must apply for the rebate. Applications will be mailed to homeowners in our area the week of September 10th. The application will include a unique "STAR code" that identifies your specific property, as well as instructions for filing your application on-line or through the mail. The deadline for applying is November 30th.
Please note, seniors 65 years or older who receive the ENHANCED STAR exemption do not have to apply for their 2007 rebates. Their checks will be mailed automatically in late August or early September. (However, seniors who receive only the BASIC STAR benefit must, like other BASIC STAR recipients, apply for the rebate.)
You do not qualify for a rebate check if you are a renter, business or for any second home that you may own.
For additional information regarding your 2007 property tax rebates, including your rebate check amount, general program information, frequently asked questions and to apply online, click here.
If you do not receive a letter, application or "STAR Code" by the end of September, be sure to contact the Tax Department at (877) 6-STAR-NY.
I will be sure to keep you posted on any further developments. Best regards.
The income-based tax refund is another social program, like the graduated federal income tax, that redistributes wealth from the "haves" to the "have nots". It seems logical that those with higher income purchase larger homes, with higher assessments and pay greater property taxes. The rebates should be structured as a fixed percentage of that paid. What's next? Property tax rebates for those who don't own property and pay taxes?
The income-based tax refund is another social program, like the graduated federal income tax, that redistributes wealth from the "haves" to the "have nots". It seems logical that those with higher income purchase larger homes, with higher assessments and pay greater property taxes. The rebates should be structured as a fixed percentage of that paid. What's next? Property tax rebates for those who don't own property and pay taxes?
Thank you.....it is just vote purchase.....it's not even enough to really do anything with except go to The Great Escape or camping for a weekend....certainly not both together......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Logged
) September 30......
